The Best CDs Rates in Massachusetts for 2025
- Metro Credit Union is a well-established credit union in Massachusetts known for rewarding members with attractive CD rates.
- Bank Five offers a 2-year add-on CD with a $100 minimum deposit that allows additional deposits to be made at any time.
- CIT Bank, an online bank, offers flexible CD options such as no-penalty and ramp-up CDs.
Certificates of deposit (CDs) give Massachusetts residents a dependable way to grow their savings while benefiting from fixed interest rates. Financial institutions offer CDs as short as a week up to five years or longer. CDs are available for predictable, short- and long-term earning with a wide range of options.
Keep reading to learn about the best CD rates available across the state, including those from local Massachusetts banks, credit unions, and online institutions. Compare top rates and terms to find the best fit for your needs.
Best CD Interest Rates In Massachusetts
Popular Banks and Credit Unions in Massachusetts
Massachusetts has a range of banks and credit unions that offer competitive CD options, including:
- BankFive: A long-standing regional bank with diverse CD choices and solid interest rates.
- Santander Bank: A widely recognized institution offering a selection of CD terms and a strong suite of personal banking products.
- Metro Credit Union: A well-established credit union known for rewarding members with attractive CD rates.
- Rockland Federal Credit Union: Another local option that provides a range of CD terms with competitive APYs.
- Jeanne D’Arc Credit Union: A community-focused credit union offers strong CD options for savers.
- Webster First Federal Credit Union: Delivers a mix of CD products with rates designed to help members earn more interest.
Online Banks Offering CDs
Online banks have become a go-to choice for many savers seeking top-tier CD rates. These digital institutions operate with lower overhead costs than traditional banks, allowing them to offer higher returns and greater flexibility. Here are some of the advantages of opening a CD with an online bank:
- Higher interest rates: Because they don’t have to maintain physical branches, online banks often pass the savings on to customers through better rates on deposit accounts, like CDs.
- Easy fund transfers: Many online banks provide seamless options for moving money between accounts, making it simple to fund your CD or withdraw upon maturity.
- Deposit protection: CDs held at reputable online banks and credit unions are insured for up to $250,000 per depositor through the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA).
Online banks are known for providing some of the best CD rates nationwide for those seeking high-yield savings options. Here are some top choices:
- Quontic Bank: Quontic Bank offers high-yield CDs with competitive rates and a streamlined digital banking experience.
- Bask Bank: Bask Bank provides strong CD returns and a simple, user-friendly online platform.
- CIT Bank: This online bank offers flexible CD term options with attractive rates. It also offers additional CD options, like no-penalty CDs and ramp-up CDs.
- Synchrony Bank: Synchrony Bank is a top choice for high-yield CDs. Opening an account requires no minimum deposit.
Online banks are a compelling alternative to traditional banking. They typically offer better interest rates, greater flexibility, and convenient access. Comparing online options can help you maximize your savings potential through short-term or long-term CDs.
Factors to Consider When Choosing a CD in Massachusetts
When selecting a CD, looking beyond general benefits, like interest rates and deposit requirements, can be helpful. The state’s economic environment can sometimes affect how local banks and credit unions operate for Massachusetts residents. Consider these factors when choosing a CD in Massachusetts:
Economic trends
Toward the end of last year, the New England region saw a drop in inflation and improved employment numbers. Despite the upward trend, shifting interest rates from the Fed could impact the rates offered by Massachusetts banks and credit unions.
State tax considerations
The State of Massachusetts taxes unearned income, including interest, dividends, and capital gains.
Bank and credit union promotions
Some Massachusetts financial institutions may offer special CD rates or limited-time promotions.
Overall banking strategy
Consider whether you want your checking accounts, savings accounts, and CDs from the same bank or wherever you find the best rates.
It’s also important to consider your financial goals and how long you will need access to your funds. Short-term options like 3-month CDs, 1-year CDs, and 18-month CDs allow you to take advantage of higher APYs while maintaining flexibility. Longer CD terms, like 2-year CDs or 5-year CDs, let you earn a fixed rate over a longer period.
Pros and Cons of CDs
Pros
- CDs provide a guaranteed return with fixed interest rates
- Many CDs outperform traditional savings accounts in terms of interest earned
- Deposits to CDs are protected by FDIC or NCUA insurance
- CDs come in a range of terms to fit most savings goals
Cons
- CD funds are locked in until maturity unless you pay an early withdrawal penalty
- Fixed CD rates may not keep pace with inflation over time
- Funds kept in CDs aren’t available for investments with potentially higher returns
Start Earning More with a CD Today
Finding the right CD can help you make the most of your savings by securing competitive interest rates and reliable returns. Whether you’re considering a local bank, credit union, or online bank, compare CD rates to ensure you get the best deal.
Compare CD rates in Massachusetts now to find the best option for your financial goals.
Frequently Asked Questions
National banks aren’t generally known for offering competitive rates, although some do. Some local banks and credit unions provide highly competitive rates or offer limited-time promotions that rival those offered nationally and through online banks.
Yes, bank CDs are FDIC-insured up to $250,000 per depositor per institution. The NCUA insures credit union CDs up to the same limit.
Most banks and credit unions impose penalties for early withdrawals, which may reduce accrued interest or principal funds.
